Experts state that big firms should also run their own salary data reports for their portfolio companies, and correct any disparities where salaries may be depressed from the earlier pandemic cuts, particularly for female CEOs.
Felix Salmon, chief financial journalist at Axios, retweeted an article on women start-up CEOs in the US taking a 30% pay cut during the Covid-19 pandemic in April last year than men who did not. Citing this as unsurprising but damning data, Salmon points at statistics that reveal that any dip in the average salaries of male CEOs was washed out by men who took a raise. This often happens with a new round of funding when companies rush to raise cash.
Salary cuts and layoffs were the obvious repercussions of the pandemic, which also sent a good message to investors and employees as cash flow is king during crises. Apart from layoffs, CEOs took pay cuts to help extend their company’s runway. However, CEO salary data revealed that the pay cuts disproportionately impacted women.
According to Kruze consulting data that tracks start-up CEO salaries, there was a $5,000 pay gap between the average male and female CEO salary in the beginning of 2020. The gap widened to $16,000 in 2021. Some numbers also suggest that women lost $800bn in income globally during the pandemic.
Wow — women startup CEOs took a 30% paycut during COVID — whereas men in the same role did not. Excellent reporting by @bizcarson in @protocol (and unfortunately unsurprising but nonetheless damning data)https://t.co/Pu7D87kqIv pic.twitter.com/uNu4dfPyAU
— Deena Shakir (@deenashakir) June 27, 2021
Claudia Sahm, an economist and former director of macroeconomic policy at the Washington Center for Equitable Growth, tweeted on Covid-19 being a dress rehearsal for the bigger climate change disaster to be faced by the world. She shared an article on the Delta variant, which originated from India, gradually taking a hold in the US, especially among the unvaccinated individuals. Experts state that only half of the population is protected, while the rest is still under a threat of the disease.
Evidence from the UK suggests that about 90% of the new infections accounted for the Delta variant, with more than half the population fully vaccinated today. However, the past month has seen doubling of cases among the vulnerable, affecting a vast number of adults under 50 years whose vaccination rates have been far lower than the older group. The UK has therefore, postponed its full reopening from 21 June to a further date.
While the UK variant was found to be 60% more transmissible than the original virus, the Delta is expected to be 60% more transmissible than the Alpha variant, making it more contagious and lethal. Experts state that India’s surge of the virus and the Delta variant saw many children being affected as well. Although there isn’t any data yet on the variant leading to severe illness in minors, the mere transmissibility is being cited as the driver for increased infection in children.
However, studies have also been able to conclude that the current Covid-19 vaccines provide effective protection against both the Alpha and Delta variants.
reminder: COVID is our dress rehearsal for our climate change disaster. the big one. https://t.co/wtRQyYHkJW we are failing so hard.
— Claudia Sahm (@Claudia_Sahm) June 27, 2021
Pedro Nicolaci da Costa
Pedro Nicolaci da Costa, federal reserve and economy correspondent at Market News, retweeted on Biden and Powell’s effort to run the economy hot in order that the current economic recovery reaches even the most marginalised workers in the labour market, and remakes the US society post pandemic.
Some experts believe that the economic revolution underway could create a more inclusive and lasting boom.
However, a number of economists and investors are worried about too much stimulus fuelling a firestorm of inflation, while other policymakers believe that this will enable workers to demand higher wages and force the wealthy to pay a fairer share of taxes.